The Computerization of Paye
Added on 2021-05-31
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THE COMPUTERIZATIONOF PAYE
1.Step 1: The Computerization of PAYE is selected to develop project for learning2.Step 2: Case summary 2.1Main characteristics of the project in terms of people, technology, resources andinstitutions involved.People- This case is about the computerization of taxation process and thus all thetaxpayers are impacted. There are more than 27 million taxpayers and 1.1 millionemployers. Thus, this project has the impact on most of the working population of thecountry. Technology – As far as technology is concerned, staff people are expected to enterdata online using terminals on their desks. This will also allow the decentralizedoperations and is recommended by the department of Inland Revenue. Also, initiallysome stakeholders were not convinced about entering the data online in decentralizedfashion and thus small pilot project is conducted which was a huge success. Successof the pilot project confirms the use of technology. Resources - There are large number of resources involved in this project due to itssheer size and complexity. CSC was involved in the feasibility study, PACTEL wasproviding independent project management activities and controlling, ICL forproviding software and hardware, British telecom provided the data transmissionsystem, PSA for refurbishing the building.Institutions- Once the project is completed and went live, it linked the majorgovernment functions and also supports data communication among the suppliers andcustomers
2.2Expectations from the project in terms of cost, time and performanceThe main expectations from the project were that it will be able to save the cost and increaseefficiency by reducing the staff, to improve the service levels for the public by increasingaccuracy, reliability and quick turnaround time to public queries and to create a system whichis flexible enough and easily adaptable to the future changes in present taxation system orimplementing reforms in personal taxation. 2.3Real outcomesAs per the stakeholders and member of steering committee, the main aim of this modernizedprogram is to generate extra tax due to more accuracy and systems changes and the sameextra tax will actually justify the cost of the project as well as generate the savings in the longrun. According to the data released in 2008 by the National Audit office, the PAYEmodernization project was due to cost 140 million Euros during 2006-2011 and expected todeliver the savings of 93 million Euros during the same period. 2.4Difference between the expected and real outcomesDuring the time of feasibility study of the project, there were no computerization projects thathave been implemented at such large scale. Thus, there were large number of challenges likeinadequate technology, large number of vendors, inexperienced programmers, politicalchallenges but still the project is a very much successful due to its strong and committedleadership and the strong steering committee. The approved project budget was 180 millionEuros in 1980s. Adding the inflation and adjusting to retail price index, this figure comes outto be 266 million Euros however the project actual cost is 240 million Euros. This clearlyindicated the success of the project and the decision was taken to implement the system in therest of the country.
2.5Who initiated the project, and why?This project was initiated by the Department of Inland Revenue in 1960s with the aim ofprocessing the huge quantities of data in a systematic, accurate and error free manner andgiving the better service to the public. Also, as the computerization increases, it will reducethe number of staff and also saves the money and efforts due to inaccurate data processingand thereby generating a saving in a long run. As per the Department of Inland Revenue, thisproject is clearly in nation’s interest. 2.6Main stakeholders of the projectThere were large number of stakeholders in the project like Department of InlandRevenue, various vendors like British telecom, Plessey, ICL, PSA, consultants,employees, employers, CSC staff, payroll providers, people and everyone impacted bythe project directly or indirectly. 3.Step 3: Model Selection for managing complex projects3.1Cynefin ModelMost of the leadership theories and decision making frameworks are based on theassumptions that circumstances are simple and relationships between cause and effectare often knowns however when these assumptions are no longer valid, it is not agood idea to follow the traditional model for decision making. Cynefin is one suchmodel that proposes different decision making approaches in different situations andhence applicable for different situations like obvious situations, complex situation andchaotic situations to name a few (Munya, 2014). In case of COP project, it was verycomplicated and complex and there were unforeseen challenges at different steps andthus require a robust model for decision making and Cynefin is really helpful. Thismodel defined 4 domains and advocates appropriate approach for decision making in
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